The Attorney-General of the Federation, Lateef Fagbemi, SAN, has said Nigeria will not become a soft target for what he described as predatory litigation and arbitration, following the country’s victory in an international arbitration involving Sunrise Power and Transmission Company Ltd. and its principal, Leno Adesanya.
Fagbemi stated this in Abuja on Tuesday while reacting to the September 17 decision of an International Chamber of Commerce tribunal in Paris, which ruled in favour of Nigeria in the dispute over the 3,050-megawatt Mambilla Hydroelectric Power Project.
He described the decision as a complete vindication of Nigeria’s position that Sunrise’s claims should be rejected. Sunrise had demanded $400 million, comprising a $200 million settlement sum and a $200 million default sum, with interest at 10 per cent per annum compounded daily.
The demand was in addition to a separate claim of more than $2.7 billion in another arbitration. Fagbemi said disputes involving the project had persisted for more than two decades, affecting efforts to secure financing and achieve financial close for the project.
According to the Attorney-General, the tribunal found that a settlement agreement and its addendum were not binding on Nigeria because the former ministers who signed them lacked the authority to commit the Federal Government without presidential approval.
He added that the tribunal also found the agreement to have been tainted by corruption and contrary to Nigerian public policy, while allegations of bribery involving Adesanya and government officials were also considered in its findings.
Fagbemi said Sunrise and Adesanya were ordered to bear 75 per cent of Nigeria’s legal fees and expenses, with interest at 10 per cent per annum compounded annually.
He said the Federal Government would continue to provide legal representation and advice to protect the country’s interests, adding that the ruling underscored Nigeria’s position against contractual claims it considers fraudulent or improperly created.
